MW: Gold extends gains as dollar slides further after Fed
By Moming Zhou
NEW YORK (MarketWatch) -- Gold futures extended gains in after-hour electronic trading as the U.S. dollar fell further after the Federal Reserve lowered its target for overnight interest rates by three quarters of one percent to a record low 0.25%. Gold for February delivery rose $7.60, or 0.8%, to $850.40 an ounce in electronic trading. The contract had closed up 0.7% in floor trading. The Fed also said in its statement that it would keep rates low "for some time" and continue to expand its balance sheet to stabilize the economy. Gold's gains "match the fall in the dollar all the way" after the Fed announcement, said Julian Phillips, editor at GoldForecaster.com. The dollar index fell as much as 2% after the Fed's decision. It was down 1% earlier.
